Correlation Between Intel and Gossamer Bio

Can any of the company-specific risk be diversified away by investing in both Intel and Gossamer Bio at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Intel and Gossamer Bio into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Intel and Gossamer Bio, you can compare the effects of market volatilities on Intel and Gossamer Bio and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Intel with a short position of Gossamer Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and Gossamer Bio.

Diversification Opportunities for Intel and Gossamer Bio

0.02

Correlation Coefficient

Intel  Gossamer Bio

Significant diversification

The 3 months correlation between Intel and Gossamer is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Intel and Gossamer Bio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gossamer Bio and Intel is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Intel are associated (or correlated) with Gossamer Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gossamer Bio has no effect on the direction of Intel i.e., Intel and Gossamer Bio go up and down completely randomly.

Pair Corralation between Intel and Gossamer Bio

Given the investment horizon of 90 days Intel is expected to under-perform the Gossamer Bio. But the stock apears to be less risky and, when comparing its historical volatility, Intel is 1.75 times less risky than Gossamer Bio. The stock trades about -0.01 of its potential returns per unit of risk. The Gossamer Bio is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest  118.00  in Gossamer Bio on May 2, 2025 and sell it today you would earn a total of  90.00  from holding Gossamer Bio or generate 76.27% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

Intel  vs.  Gossamer Bio

Intel

Risk-Adjusted Performance

Very Weak

Over the last 90 days Intel has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Intel is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Gossamer Bio

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Gossamer Bio are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Gossamer Bio unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Intel and Gossamer Bio

The main advantage of trading using opposite Intel and Gossamer Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel position performs unexpectedly, Gossamer Bio can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Gossamer Bio will offset losses from the drop in Gossamer Bio's long position.

The idea behind Intel and Gossamer Bio pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.